# FedEx out-state license plates

**URL:** <https://boards.straightdope.com/t/fedex-out-state-license-plates/1013364>\
**Category:** Factual Questions\
**Created:** [January 25, 2025, 12:38am UTC](https://boards.straightdope.com/t/fedex-out-state-license-plates/1013364 "2025-01-25T00:38:54Z")\
**Posts on this page:** 12\
**Page:** 1

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**Author:** ![Petek](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/petek/32/1590_2.png) [@Petek](https://boards.straightdope.com/u/Petek)\
**Post date:** [January 25, 2025, 12:38am UTC](https://boards.straightdope.com/t/fedex-out-state-license-plates/1013364/1 "2025-01-25T00:38:55Z")

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I live in California. Today (Jan. 24, 2025) a FedEx truck arrived at my apt. complex to make a delivery. I noticed that the truck had a Montana license plate. Why would this be so? I doubt that FedEx shipped a product from Montana to Calif. in a truck. Perhaps FedEx had too many trucks in MT and not enough in Calif?

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**Author:** ![Procrustus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/procrustus/32/2994_2.png) [@Procrustus](https://boards.straightdope.com/u/Procrustus)\
**Post date:** [January 25, 2025, 12:45am UTC](https://boards.straightdope.com/t/fedex-out-state-license-plates/1013364/2 "2025-01-25T00:45:28Z")

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> **[Why Are So Many People Registering Their Cars in Montana?](https://www.llctlc.com/post/why-are-so-many-people-registering-their-cars-in-montana)**
>
> Montana LLCs & Registered AgentsA Montana LLC plus our registered agents are the dream team making the savings of vehicle registration in Montana possible for out-of-state residents. When you form an LLC in Montana, you can use this legal entity...

It’s a way to save money. Not sure how “legal” it is.

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**Author:** ![snowthx](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/snowthx/32/10660_2.png) [@snowthx](https://boards.straightdope.com/u/snowthx)\
**Post date:** [January 25, 2025, 12:49am UTC](https://boards.straightdope.com/t/fedex-out-state-license-plates/1013364/3 "2025-01-25T00:49:59Z")

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We recently rented a U-Haul and all of their trucks seem to have Arizona plates. That was the case when we rented one in Washington, as well as Nevada. I supposed there is some sort of financial advantage to the company. Sorta like so many companies registered in Delaware.

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**Author:** ![Pork\_Rind](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/pork_rind/32/111_2.png) [@Pork\_Rind](https://boards.straightdope.com/u/Pork_Rind)\
**Post date:** [January 25, 2025, 1:08am UTC](https://boards.straightdope.com/t/fedex-out-state-license-plates/1013364/4 "2025-01-25T01:08:13Z")

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> [@Procrustus](#):
>
> It’s a way to save money. Not sure how “legal” it is.

In California, [not at all.](https://www.sportscarmarket.com/columns/legal-files/california-cracks-down-on-montana-llcs)

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**Author:** ![doreen](https://avatars.discourse-cdn.com/v4/letter/d/858c86/32.png) [@doreen](https://boards.straightdope.com/u/doreen)\
**Post date:** [January 25, 2025, 2:17am UTC](https://boards.straightdope.com/t/fedex-out-state-license-plates/1013364/5 "2025-01-25T02:17:10Z")

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That article seems to be saying it’s legal according to Montana law and it probably is. That doesn’t mean it’s legal according to any other state or country’s law. I can register my car using the address of my vacation home in Pennsylvania and it’s probably legal as far as PA is concerned- but if I’m a NY resident and the car is kept in NY, NY law requires me to register it in NY and they won’t care about Montana’s opinion.

It seems like Montana is looking to compete with South Dakota in registering cars that are not in that state. As far as I can tell, the whole thing started with people who moved to Mexico and found it difficult to import their car into Mexico , but if you live in the US , you can drive a car with US plates in Mexico. SD doesn’t require any inspections or insurance to register a car and it can be done without ever showing up in person. Of course, that doesn’t mean it’s legal to live in Mexico and keep your car in Mexico with US plates indefinitely.

As for the OP, it’s one truck. I can’t think of a reason for a truck with Montana plates to be in California but it could just be that the truck was moved from one location to another and the paperwork just hasn’t caught up.

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**Author:** ![Cervaise](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cervaise/32/16693_2.png) [@Cervaise](https://boards.straightdope.com/u/Cervaise)\
**Post date:** [January 25, 2025, 6:57am UTC](https://boards.straightdope.com/t/fedex-out-state-license-plates/1013364/6 "2025-01-25T06:57:46Z")

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Since the factual question has been answered (the parent company is trying to save money), I’ll note for the curious that, here in Western Europe, we see a lot of long-haul truckers bearing plates from Poland and Hungary and other EU points east, for basically the same reason.

The legal framework is obviously different (EU-wide regulations govern cross-border freight-vehicle safety to a greater extent than in the US, for example), but the motivation behind it is the same.

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**Author:** ![bob\_2](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bob_2/32/3341_2.png) [@bob\_2](https://boards.straightdope.com/u/bob_2)\
**Post date:** [January 25, 2025, 10:15am UTC](https://boards.straightdope.com/t/fedex-out-state-license-plates/1013364/7 "2025-01-25T10:15:21Z")

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> [@Cervaise](#):
>
> in Western Europe, we see a lot of long-haul truckers bearing plates from Poland and Hungary and other EU points east, for basically the same reason.

This is why many/most countries have introduced tolls for Trucks. These are generally classified according to several criteria, such as the vehicle’s weight, number of axles, distance travelled, and emission class. The pricing structure can vary from country to country, and even within the same country, there can be variations depending on the road network.

This is in addition to tolls charged on highways bridges and tunnels.

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**Author:** ![Schnitte](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/schnitte/32/9033_2.png) [@Schnitte](https://boards.straightdope.com/u/Schnitte)\
**Post date:** [January 25, 2025, 2:02pm UTC](https://boards.straightdope.com/t/fedex-out-state-license-plates/1013364/8 "2025-01-25T14:02:19Z")

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> [@Cervaise](#):
>
> Since the factual question has been answered (the parent company is trying to save money), I’ll note for the curious that, here in Western Europe, we see a lot of long-haul truckers bearing plates from Poland and Hungary and other EU points east, for basically the same reason.

It’s not exactly the same reason. European long-haul companies like to register their trucks in Central/Eastern European jurisdictions primarily so they can hire their drivers under the employment law of those countries and pay the standard wages there, rather than the much higher Western European wages.

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**Author:** ![Cervaise](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cervaise/32/16693_2.png) [@Cervaise](https://boards.straightdope.com/u/Cervaise)\
**Post date:** [January 25, 2025, 2:18pm UTC](https://boards.straightdope.com/t/fedex-out-state-license-plates/1013364/9 "2025-01-25T14:18:38Z")

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… So the same reason. Saving money.

Not the same way, but with the same motivation.

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**Author:** ![Schnitte](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/schnitte/32/9033_2.png) [@Schnitte](https://boards.straightdope.com/u/Schnitte)\
**Post date:** [January 25, 2025, 6:46pm UTC](https://boards.straightdope.com/t/fedex-out-state-license-plates/1013364/10 "2025-01-25T18:46:12Z")

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Well, yes, sure, the ultimate motivation is the same as in most decisions in the realm of business: Reduce costs and/or increase revenue. But the way foreign registrations save money in Europe is different from the way out-of-state registrations save money in the US, which I suppose deserves mention in a thread like this.

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**Author:** ![Marvin\_the\_Martian](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/marvin_the_martian/32/2898_2.png) [@Marvin\_the\_Martian](https://boards.straightdope.com/u/Marvin_the_Martian)\
**Post date:** [January 25, 2025, 6:47pm UTC](https://boards.straightdope.com/t/fedex-out-state-license-plates/1013364/11 "2025-01-25T18:47:21Z")

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As far as U-Haul is concerned, they use Arizona plates because the company is headquartered in Arizona. License fees for commercial vehicles late work differently than for personal vehicles in that the fees are much higher and are apportioned among the states in which the vehicle operated in a given year:

> **[Why U-Haul trucks all have Arizona license plates | CNN Business](https://www.cnn.com/2022/04/23/business/uhaul-rental-trucks-license-plates-arizona/index.html)**
>
> There are around 175,000 white and orange U-Haul rental trucks in the United States and Canada for do-it-yourself movers. And they all have something strange in common: Arizona license plates with the word “apportioned” slapped on them.

So it doesn’t matter so much which state the vehicle is licensed in.

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**Author:** ![Sunspace](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/sunspace/32/1250_2.png) [@Sunspace](https://boards.straightdope.com/u/Sunspace)\
**Post date:** [January 27, 2025, 7:01pm UTC](https://boards.straightdope.com/t/fedex-out-state-license-plates/1013364/12 "2025-01-27T19:01:05Z")

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Doesn’t explain the rental truck I saw in Toronto one time with Hawaii plates…
